Apple unveils larger iPhones and a smartwatch

CUPERTINO, CA - Apple has unveiled a smartwatch -- a wearable device that marks the company's first major entry in a new product category since the iPad's debut in 2010.

The move is significant because of recent questions about whether Apple still has a knack for innovating following the 2011 death of co-founder Steve Jobs.

It'll be called the Apple Watch, rather than the iWatch.

The device's introduction today upstaged the company's two new, larger iPhones. The new phones won't just have bigger screens; they'll have a new, horizontal viewing mode to take advantage of the larger display. The iPhone 6 will have a screen measuring 4.7 inches, while the iPhone 6 Plus will be 5.5 inches. In both cases, app developers will be able to design apps that can be viewed differently when the phone is held horizontally.

The larger models are expected to help Apple compete with Android devices.

Apple today also introduced a system for using the phone to make credit card payments at retail stores.